This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Economic data relating to the eurozone is entirely absent this morning, and the continuing survival of Portugal’s government is not sufficiently exciting to provoke much movement.
Lisbon’s bond yields have dropped back slightly after it emerged that the country would not be heading to the polls again. The president has said that he backed the existing coalition, meaning that fresh elections are not required. This heads off one of the potential crises of the summer, given that two weeks ago the government looked on the verge of dissolution.
Eurozone data watchers will have to wait until Wednesday for the real fun to begin, when PMI data from around the region is published. Germany’s services number is forecast to squeak into expansion territory, but everyone else will lag behind. Of particular concern will be France, whose services and manufacturing figures will barely move higher. No Frenchman has won the Tour de France for 28 years, and this is perhaps symbolic of how France is lagging behind its supposed partner Germany. The gap between the two remains stark, and President Hollande has done little to narrow it.